KUALA LUMPUR: Food and beverage (F&B) items are likely to rise in price as a result of subsidies for cooking oil being removed in stages starting next month, said analysts. Kenanga Research analyst Soong Wei Siang said F&B companies are expected to raise prices, if any, in January next year rather than next month. “However, through improved operating efficiency, these companies may be able to minimise the impact of the subsidy removal,” he said. “If you look at the F&B companies, or the listed ones per se, not many have cooking oil forming a major part of their cost of goods sold. “We do not use cooking oil in our Kenny Rogers restaurants except for corn oil, which is not subsidised at all by the government.

Source: The Edge Markets October 21, 2016 01:52 UTC